Amazon Seeks to Offload $8B Nvidia Chips through Special Financing Vehicle
Amazon's AI infrastructure spending is putting pressure on its cash flow, prompting the company to explore an asset-light financing route. According to a Financial Times report, Amazon has held talks with investors about moving $8 billion worth of Nvidia chips into a special-purpose vehicle (SPV). This would involve shifting ownership and part of the financing burden to outside investors, allowing Amazon to lease the chips back.
The proposed structure could give Amazon another way to fund its AI infrastructure buildout while reducing capital tied up in expensive Nvidia hardware. The company has been investing heavily in data centers and advanced chips, with a $66.1 billion year-over-year increase in property and equipment purchases tied primarily to AI investments.
Amazon's shares have gained 7.5% year-to-date despite a 3.9% decline in September. The company's trailing-12-month free cash flow turned negative at $7.6 billion, largely due to the increased spending on AI infrastructure.